Exxon had originally sought as much as $14.7 billion for assets nationalized after it refused to accept terms of a partnership with Petroleos de Venezuela.

"Our goal with the arbitration was to seek compensation for the fair market value of assets that were expropriated," Exxon said in a statement Thursday.

The Exxon settlement may remove legal obstacles to the planned sale of Petroleos de Venezuela's U.S. unit, Citgo Petroleum Corp.

President Hugo Chavez began to expropriate assets in Venezuela's energy, mining and telecommunications industries in 2005 as part of a move to nationalize industries that were deemed important to the country's continued development and sovereignty. Energy companies were given until late 2007 to accept proposed contract and compensation terms from the government or risk having their assets seized.

Exxon and ConocoPhillips were the largest U.S.-based energy companies to reject Venezuela's terms.

The South American country must honor ICSID rulings to avoid default of sovereign bonds.